Dec 29, 2021
With the increasing cost of wheat and freight globally, National Flour Mills today announced its decision to increase the wholesale price of flour by between 15% and 22%, with a suggested increase averaging 19% on the retail price of flour to the consumer.
This decision, the company said, follows several internal initiatives to improve operating efficiency and reduce processing costs in an attempt to contain expenditure and maintain the price of flour, in the face of increased supply chain costs and soaring commodity prices. Flour prices have not been adjusted since 2008.
Commenting on the decision, NFM CEO Ian Mitchell said: “This was by no means an easy decision, as we did everything within our control to try to hold our prices; but with the staggering increases in raw material and shipping costs, we were left with no choice but to make the adjustment. We are acutely aware of the knock-on effect that an increase in the price of flour could have in the market, but we cannot sell a product for less than it costs to produce.”
NFM noted that the price of Spring Wheat moved from as low as USD5.00 per bushel in 2020, to as high as USD10.91 per bushel this year, additionally, the cost of freight has increased more than 110%. The following graph illustrates the increases in the price of wheat.
The Trinidad and Tobago Stock Exchange Limited
Wednesday 29th December, 2021